Seven-Eleven is a well-known name for people living in developed countries and is the store format they use frequently. Based on the model of spending a limited amount of time inside, it usually sells small, consumable packaged products. Earlier this month, we announced our first store in Andheri, a suburb of western Mumbai, and made our debut in India.
The purpose of the master franchise agreement with Reliance Retail Ventures Limited (RRVL) is to acquire meaningful chunks of Indian retail pies. This is currently estimated to be close to $ 1 trillion. “We will deploy quickly in major and commercial areas of the Mumbai metropolitan area,” the Reliance said in a statement. Texas-based Seven-Eleven signed a contract with Future Group, a promotion organization for Kishore Biyani, in early 2019. When Biyani was in a financially difficult position, the plan was postponed and no store was opened. Globally, Seven-Eleven has more than 77,000 stores in 18 countries.
This format is new in the Indian context, and according to Harminder Sahni, founder and managing director of Wazir Advisors, the story of Indian urbanization has great opportunities. “As India has smaller families, the need for a Seven-Eleven format will increase, which will be very noticeable in big cities like London, New York and San Francisco,” he said before adding the model. increase. Pick up something on the move. ”
For Reliance, this is another step towards a greater presence across retail formats. Reliance Fresh, Jio Mart, Reliance Digital, and Reliance Trends, to name a few. Abney Schroy, Executive Director (Research) at Edelweiss Securities, believes Seven-Eleven will provide shoppers with a unique style of convenience, offering a variety of drinks, snacks and delicacies along with daily necessities replenishment. increase. He finds this move by Reliance interesting because it is already India’s largest retailer before it calls attention. “Convenience stores in India’s neighborhood were very challenging with many failures.” He said the rise of e-commerce, costly models, assortment limits and, more importantly, Seven-Eleven. It lists some issues to be addressed globally, such as how to “make the most of that money with tobacco and alcohol.” Be careful in India.
For Sahni, this format took a long time in India due to its limited product portfolio. “In the developed markets, there is a lot of demand for categories such as chewing gum, nut packs and energy bars,” he says. Given the value of low tickets, the Seven-Eleven game is to get volume and get people to visit outlets as often as possible. “For example, with a 2% margin, three visits a day means 6%. In that sense, it comes down to the number of turns the outlet can manage.”
In most markets, these stores are only 600 square feet, but are not difficult to walk to the corner stores. How it is dealt with in India can be a track.
Seven-Eleven has entered India, but there are many challenges before that.
https://www.businesstoday.in/latest/corporate/story/7-eleven-has-entered-india-but-the-challenges-before-it-are-many-309422-2021-10-14?utm_source=rssfeed Seven-Eleven has entered India, but there are many challenges before that.